Snapping a nine-day winning streak, the BSE benchmark Sensex today retreated from record highs on profit-booking in realty, capital goods, and metal stocks.
The 30-share Sensex, after surging by 825 points in the past nine sessions and setting fresh highs during the rally, closed 54 points lower at 27,085. The broader Nifty fell 18 points to 8,095.
Losses in Indian markets tracked weak global markets ahead of European Central Bank meet later in the day. A month-long march higher for European and Asian stock markets stalled on Thursday on concerns the European Central Bank will do nothing immediate at its meeting later in the day to address a deteriorating economic outlook.
Market analysts don’t see a sharp correction in Indian markets. TS Harihar, chief executive and founder of HRBV Client Solutions Private, said that Nifty has limited downside risks and has support at 7950 levels.
Ashish Chaturmohta of Fortune Equity Broking, said Nifty has support at 8,000 levels and could consolidate in the 8000-8200 zone for the next few days.
Among Nifty stocks, DLF shares fell 8.6 per cent on Thursday after the Punjab and Haryana High Court cancelled the allocation of a 350-acre land in Gurgaon to the realty major. The allocation was challenged on the ground that the land was acquired for a recreational park, but later given to DLF for commercial sale.
The BSE realty index fell over 4 per cent to be the biggest loser among sectoral indices. Among other real estate stocks, Godrej Properties, HDIL, and Indiabulls Real Estate fell between 3-4 per cent.
Among other major Nifty losers, JSPL, Hindalco, BHEL and Tata Steel fell between 3 per cent. Some buying was seen in selective auto stocks with Bajaj Auto and Hero MotoCorp rising 3.4 per cent and 2.1 per cent.